Idleb (Syria) (AFP)

Authorities in northwestern Syria have started to replace the plummeting Syrian pound with Turkish currency in current transactions to protect the province of Idleb, the last great jihadist and rebel stronghold, from economic collapse , a local official told AFP on Monday.

This decision comes before the entry into force on Wednesday of an American law called "Caesar" which imposes new sanctions on the Syrian regime and its allies, which should, according to analysts, weigh more a Syrian pound adrift.

The latter is experiencing its worst dropout since the start of the war in 2011, propelling prices to historic highs and leading to the closure of businesses and unprecedented demonstrations in regions controlled by Damascus.

Last week, the dollar briefly crossed the threshold of 3,000 Syrian pounds, more than four times the official rate, set in March by the Central Bank at 700 pounds for a greenback. Before the war, a dollar was worth 47 pounds.

The "government of salvation" - civil branch of the jihadist group Hayat Tahrir al-Cham which dominates the Idleb region - "ordered traders and exchange offices" to supply Turkish pounds on the market, said Bassel Abdel Aziz, responsible for economic affairs in the region.

The Turkish currency will thus be "used in current transactions in the liberated territories", he added, adding that the Syrian pound will continue to circulate "but at least".

Sunday, inside a local financial institution in the town of Sarmada, in the province of Idleb, an AFP correspondent saw bags filled with Turkish lira notes and coins, while petrol stations displayed their prices in Turkish currency.

On Friday, the UN confirmed that a shipment of Turkish banknotes had been delivered to the region on June 11.

Under the new measures, the price of the bag of bread has been set at two Turkish pounds (less than one euro).

The Idleb region, populated by three million people, the majority of whom depend on humanitarian aid to survive, is home to several jihadist groups and rebels supported by Turkey.

The province joins other regions of northern Syria, controlled or influenced by Ankara, having adopted the Turkish currency.

Devastated by nine years of war, the Syrian economy is also weakened by the financial crisis in Lebanon which has long allowed dollars to flow into government areas, subject to international sanctions.

© 2020 AFP